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http://ssrn.com/abstract=1491529
 
 

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Mom-and-Pop Meet Big Box: Complements or Substitutes?


John Haltiwanger


University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Ron S. Jarmin


U.S. Census Bureau

C. J. Krizan


Government of the United States of America - Bureau of the Census

September 1, 2009

US Census Bureau Center for Economic Studies Paper No. CES-WP- 09-34

Abstract:     
In part due to the popular perception that Big-Boxes displace smaller, often family owned (a.k.a. Mom-and-Pop) retail establishments, several empirical studies have examined the evidence on how Big-Boxes’ impact local retail employment but no clear consensus has emerged. To help shed light on this debate, we exploit establishment-level data with detailed location information from a single metropolitan area to quantify the impact of Big-Box store entry and growth on nearby single unit and local chain stores. We incorporate a rich set of controls for local retail market conditions as well as whether or not the Big-Boxes are in the same sector as the smaller stores. We find a substantial negative impact of Big-Box entry and growth on the employment growth at both single unit and especially smaller chain stores – but only when the Big-Box activity is both in the immediate area and in the same detailed industry.

Number of Pages in PDF File: 46

Keywords: Big-Boxes, Small Business, Retail Trade, Firm Location, Structural Change

JEL Classification: R30, L16

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Date posted: October 22, 2009  

Suggested Citation

Haltiwanger, John and Jarmin, Ron S. and Krizan, C. J., Mom-and-Pop Meet Big Box: Complements or Substitutes? (September 1, 2009). US Census Bureau Center for Economic Studies Paper No. CES-WP- 09-34. Available at SSRN: http://ssrn.com/abstract=1491529 or http://dx.doi.org/10.2139/ssrn.1491529

Contact Information

John C. Haltiwanger
University of Maryland - Department of Economics ( email )
College Park, MD 20742
United States
301-405-3504 (Phone)
301-405-3542 (Fax)
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Institute for the Study of Labor (IZA) ( email )
P.O. Box 7240
Bonn, D-53072
Germany
Ron S. Jarmin
U.S. Census Bureau ( email )
4700 Silver Hill Road
Washington, DC 20233
United States
C. J. Krizan (Contact Author)
Government of the United States of America - Bureau of the Census ( email )
Suitland Federal Center
Washington, DC 20233
United States
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